India’s blue-chips Nifty 50 and Sensex opened higher and hit fresh all-time highs on Thursday. The Nifty 50 was up 0.29% to a new all-time high of 20,127.95 by 9:15 am, while the S&P BSE Sensex gained 0.24% to 67,627.03.
The Nifty had scaled new peaks on Monday and Tuesday, while the Sensex hit a record high for the first time since July 20.
The shares of Bombay Dyeing went up 20 per cent when the markets opened. This came after the news that the company will sell its 22 acre land in Mumbai’s Worli to become debt-free.
The selling of land to a unit of Japan’s Sumitomo Realty and Development will be done in two phases for a total consideration of Rs 5,200 crore. The first phase will see the company receiving Rs 4,675 crore, while the rest will be received upon completion of certain conditions as set out in the definitive agreements.
The stock has gained 28.2 percent in the past month, and 166.35 percent in the last six months.
Suven Pharmaceuticals climbed 4% after government approved foreign investment of up to 95.89 billion rupees in the drug maker.
All the 13 major sectors logged gains, with metals rising over 2% and realty stocks adding 1.75%. The more domestically focussed small-caps and mid-caps, which witnessed elevated volatility earlier this week, gained 1% each.
“The undertone for Indian markets remains positive, aided by strong macro data and steady retail inflows although foreign selling has begun in September,” Anita Gandhi, director at Arihant Capital Markets said, adding that the benchmarks could see “further upside, but with higher volatility.”
Gandhi, however, cautioned that the valuations are still on the higher side, which could cap the gains.
Analysts also said that the likelihood of a Fed rate pause would support the sentiment in the coming days.
Asian equities rose in early trading on easing rate concerns after U.S. consumer price data showed core inflation moderated to 4.3% in August from 4.7% in July, the smallest year-on-year rise in nearly two years.
However, the overall retail inflation accelerated 3.7% in August, the most in 14 months, on rising gasoline prices.
Meanwhile, the Indian rupee opened 2 paise higher against the US dollar on Thursday amid a steady greenback after the higher-than-expected US inflation data.
(with inputs from Reuters)
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